Tuesday, March 8, 2016

Ohio's D.O.L.L.A.R. Deed Program

The 131st Ohio General Assembly is currently considering new legislation to give individuals and families another opportunity to stay in their homes and avoid foreclosure after default on a mortgage loan.

House Bill 303 would create the D.O.L.L.A.R. Deed Program, established in part by the Ohio Housing Finance Agency. Under the new program, if the borrower defaulted on a mortgage loan, the borrower and lender would enter into an agreement in which the borrower transfers his interest in the property to the lender by way of a deed in lieu of foreclosure. In return, the lender would then rent the property back to the borrower for a specified period of time. During the lease term, the borrower would be able to repurchase or refinance the property.

House Bill 303 was passed by the House on December 8, 2015 and is currently under consideration by the Senate Committee on Financial Institutions.